On 13, February 2025, a Japanese company commenced the Louisiana EV Battery Plant Construction works, which is a $491 million production facility at Jefferson Parish. This upcoming facility will manufacture electric vehicle battery ingredients and will be the first of its kind in the United States.
UBE Corporation will construct a facility on Cornerstone’s campus in Waggaman to make dimethyl carbonate and ethyl methyl carbonate. These two are solvents that are mainly used in EV batteries and semiconductors. This facility is set to be set up despite the pushbacks from the neighbors in the previous months over environmental concerns.
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Significance of the Project
According to a number of company leaders, this project is expected to cut the reliance of U.S on the Chinese imports.
“All of these battery manufacturing facilities located in the U.S. will be able to source all raw materials domestically. This therefore means a shorter supply chain, a more cost-effective supply chain and better integration in the United States,” stated Tom Yura, who is the chief operating officer and site director of UBE’s American subsidiary.
At the groundbreaking ceremony on Thursday were Japanese Consul-General Shinji Watanabe, UBE President Masato Izumihara, Cornerstone President and CEO Matthew Soko. Also present were several local business leaders and elected officials.
Commencement of Operations on the Plant
This plant is expected to kick off operations in the year 2027. This project will create nine permanent jobs, as well as 47 contractor positions through Cornerstone. The construction of the project is expected create 400 temporary jobs.
The project will be accorded an $80 million tax break over the next ten years through the Industrial Tax Incentive Program after being approved by the Jefferson Parish Council, School Board and Sheriff’s Office in 2024.
Challenges Facing the Louisiana EV Battery Plant Construction Project
UBE and Cornerstone faced pushbacks from residents in Waggaman and River Ridge last fall when it was seeking approval from the Jefferson Parish Advisory Board to continue with the project. The neighbours packed into planning meetings to oppose the application. The application initially sought to expand industrial zoning to within 10 feet of the surrounding homes.
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Cornerstone later on changed the application and proposed to remove the expansion and only construct UBE’s facility on its preexisting campus. However, the residents still raised concerns that another chemical manufacturer on the site could pose threats to their health and safety. Many of them said they lacked trust in Cornerstone after previous controversies it faced, like when its tenant Dyno Nobel constructed a boiler on the campus without proper permits.
The planning board voted to recommend approval in October after twice deferring a decision, and the Parish Council unanimously approved it a month later. Additionally, the Louisiana Department of Environmental Quality granted an air permit in December.
